19

Strategy In 2008

CASE

ASSIGNMENT QUESTIONS
1. What is PepsiCos corporate strategy? Briefl y identify the business strategies that PepsiCo is using in each
of its consumer business segments in 2008.
2. What is your assessment of the long-term attractiveness of the industries represented in PepsiCos business
portfolio?
3. What is your assessment of the competitive strength of PepsiCos different business units?
4. What does a 9-cell industry attractiveness/business strength matrix displaying PepsiCos business units look
like?
5. Does PepsiCos portfolio exhibit good strategic fi t? What value-chain match-ups do you see? What
opportunities for skills transfer, cost sharing, or brand sharing do you see?
6. Does PepsiCos portfolio exhibit good resource fi t? What are the cash fl ow characteristics of each of
PepsiCos four segments? Which businesses are the strongest contributors to PepsiCos free cash fl ows?
7. Based on the preceding analysis, what is your overall evaluation of PepsiCos business portfolio in 2008?
Does the portfolio provide the companys shareholders with an opportunity for above-average market
returns?
8. What strategic actions should Indra Nooyi take to sustain the corporations impressive fi nancial and market
performance? Should its free cash fl ows be used to fund additional share repurchase plans, pay higher
dividends, make acquisitions, expand internationally, or for other purposes? What other strategic actions
should be pursued by corporate level management?